Debt can be painful. It’s overwhelming and frustrating. Whether it’s your student loan, car loan, mortgage, or credit card balances, debt wears you out. It destroys financial dreams and makes moving ahead seem like an impossibility. Being saddled with debt is certainly no fun. But the good news is you don’t have to carry the burden of debt forever. There are ways to shed your debt for good. And all it takes is strong dedication and commitment towards becoming debt-free. So if you’re determined to break free from the shackles of debt in 2020, here are some useful insights to help you pay them off faster.
5 Surefire Ways to Get Out of Debt in the Coming Year
- Stop using your credit cards. No doubt credit cards can be a blessing. But when not handled well, they can quickly trap you in a vicious cycle of debt. If you’re serious about breaking free from debt, the first thing you should do is stop using your credit cards. Remember, the more you swipe, the higher your balance climbs. If you can’t stop using your credit cards, at least avoid taking cash advances or overusing them.
- Create & follow a budget. A budget enables you to track your expenses, keep a check on them, and minimize them wherever possible. Separate your needs from wants and prioritize your expenses. For instance, you could cut down your daily visit to the coffee shop or limit eating out to once a month. These small savings can add up to a significant amount over the year and help you pay off debts faster.
- Pay down debts with windfalls. A tax refund or work bonus can tempt you to splurge. But before you succumb, think about how you can put it to meaningful use. Using these sudden windfalls to pay down your balances can help reduce debts faster.
- Start a side hustle. If you’re already living a modest life and your current income is barely enough to make ends meet, consider picking up a side hustle. Freelancing or taking up a part-time job can help you make some extra dollars enabling you to knock out your debts.
- Tackle your debts. Try to lower the cost of your debt. By doing this you may be in a better position to pay it off. You can do this by negotiating with the lender to lower the interest rate. If you have credit card debts, you could opt for credit card refinancing or balance transfer. If you’re dealing with other loans, consider debt consolidation or debt settlement.
When you’re buried deep in debt it can feel like there’s no way out. But with the help of these strategies and a little effort from your side, you can soon make debt a thing of the past!